The gap between when people in the UK want to retire and when they think they will be able to has reached a record 5.3 years, according to new research. The average age people would like to retire remains 62.3, but the age at which they realistically expect to stop working has risen to 67.6.
The gap has increased from 4.7 years in 2025 and 4.4 years in 2024, despite people's preferred retirement age remaining unchanged for the past three years. The findings come from research involving 6,000 people across the UK and coincide with the start of the gradual increase in the State Pension age from 66 to 67.
Financial pressures and demographic differences
Financial pressures appear to be playing a significant role in people's expectations for later life. More than a quarter (26 per cent) of adults surveyed said they are struggling to get by on their current income, compared with 24 per cent last year. Nearly two-thirds (63 per cent) worry they are not saving enough for retirement, while 48 per cent believe their retirement finances are mainly influenced by factors outside their control.
Renters face one of the biggest differences, expecting to retire 6.8 years later than they would ideally like. That compares with a gap of just 2.1 years among people who own their home outright, while mortgage holders have a gap of 5.7 years.
Women also face a bigger retirement gap than men. The figure for women has increased from 5.4 years in 2025 to 6.1 years this year, compared with an increase from 4.1 to 4.5 years among men.
Younger generations and practical concerns
Younger generations have some of the biggest differences between their retirement ambitions and expectations. Millennials have a 6.8-year gap and would ideally like to retire at 61, while Generation Z respondents would like to stop working at 60 but face a 5.9-year gap.
The research also raises questions about whether simply working for longer will be practical for everyone. More than half (51 per cent) expect they will need to continue working beyond State Pension age. However, 18 per cent said they would be unable to continue in their current role beyond the age of 60, while 47 per cent said they could not remain in the same job beyond 70.
More than half (51 per cent) are also worried their finances will not last throughout retirement, while 42 per cent expect their standard of living to be worse in retirement than it is now.
Planning and pension contributions
Catherine Foot, Director of the Standard Life Centre for the Future of Retirement, said: “This year’s Retirement Voice findings point to a noticeable shift in how people are feeling about retirement. The age people would ideally like to retire hasn’t changed, but the point at which they think they will actually be able to stop work is drifting further away.”
She added: “The gaps matter too. Renters, women and younger generations, as well as those living in the North East, are among those furthest from the retirement they would ideally like, while many people also question whether working into their late 60s or beyond will be physically or practically possible.”
The research found a significant difference between the expectations of people who have planned for retirement and those who have not. People who said they had done “a great deal” of retirement planning had a gap of 2.5 years between when they wanted and expected to retire. Among those who had done no planning, it was 7.3 years. More than a third (35 per cent) of respondents said they had done no retirement planning at all.
Standard Life also modelled the potential effect of increasing workplace pension contributions. Its example assumes someone starts work at 22 earning £30,000 and receives annual salary growth of 3.5 per cent. With minimum automatic enrolment contributions of five per cent from the employee and three per cent from their employer, Standard Life estimates they could have a pension worth £252,000 in today's prices at 68. Increasing the employee contribution to eight per cent could, under the same assumptions, produce a £270,000 pot by age 62. The figures assume five per cent annual investment growth, two per cent inflation and an annual management charge of 0.75 per cent and are illustrations rather than guaranteed returns.
Foot said starting earlier, understanding existing pension savings and increasing contributions where affordable could help people bring their expected retirement date closer to the age at which they would ideally like to stop working.
